Aus students lack financial literacy skills: OECD

One in 10 Australian students lacks the financial literacy necessary for later life, according to the first international study of students’ financial literacy conducted by the OECD.

Released by the OECD as part of its 'Programme for International Student Assessment' (PISA), the study assessed the extent to which 15-year olds across 18 countries have the financial literacy skills for later life.

ASIC senior executive leader for financial literacy Miles Larbey welcomed the results but said more needs to be done to prepare young Australians for the challenges of financial decision-making beyond school.

“One in 10 Australian students performed below the baseline, which suggests they are less likely to be prepared to deal with the financial decision-making demands of everyday life,” said Mr Larbey.

“The research also found that 79 per cent of Australian students agreed that it is important for them to learn money management at school,” he said.

Mr Larbey said it is important that students understand concepts such as budgeting and value for money for their “financial wellbeing”.

ASIC said its MoneySmart teaching program is the only national financial literacy program for schools which “aims to promote and support consumer and financial literacy in schools”.

“[The] PISA results highlight the importance of programs like ASIC’s Money Smart Teaching in building financial literacy for the next generation,” said Mr Larbey.